7 USC 25 - Private rights of action

1 So in original. The word “or” probably should not appear.

2 So in original. Probably should be preceded by “a”.

entity or a registered futures association willfully aids, abets, counsels, induces, or procures any failure by any such entity to enforce (or any violation of the chapter in enforcing) any bylaw, rule, regulation, or resolution referred to in paragraph (1) or (2) of this subsection, shall be liable for actual damages sustained by a person who engaged in any transaction specified in subsection (a) of this section on, or subject to the rules of, such registered entity or, in the case of an officer, director, governor, committee member, or employee of a registered futures association, any transaction specified in subsection (a) of this section, in either case to the extent of such person’s actual losses that resulted from such transaction and were caused by such failure or violation.

3 So in original. Probably should be followed by a comma.

registered futures association, officer, director, governor, committee member, or employee acted in bad faith in failing to take action or in taking such action as was taken, and that such failure or action caused the loss.

Editorial Notes

References in Text

The Wall Street Transparency and Accountability Act of 2010, referred to in subsec. (a)(5), is title VII of Puspan. L. 111–203, July 21, 2010, 124 Stat. 1641, which enacted chapter 109 (§ 8301 et seq.) of Title 15, Commerce and Trade, and enacted and amended numerous other sections and notes in the Code. For complete classification of this Act to the Code, see Short Title note set out under section 8301 of Title 15 and Tables.

The Futures Trading Act of 1982, referred to in subsec. (d), is Puspan. L. 97–444, Jan. 11, 1983, 96 Stat. 2294, which is classified generally to this chapter. For complete classification of this Act to the Code, see Short Title of 1983 Amendment note set out under section 1 of this title and Tables.

Codification

Puspan. L. 110–234 and Puspan. L. 110–246 made identical amendments to this section. The amendments by Puspan. L. 110–234 were repealed by section 4(a) of Puspan. L. 110–246.

Amendments

2010—Subsec. (a)(1)(B). Puspan. L. 111–203, § 749(h)(1)(B), which directed insertion of “or any swap” after “such contract”, was executed by making the insertion after “such contract” the second time appearing, to reflect the probable intent of Congress.

Puspan. L. 111–203, § 749(h)(1)(A), inserted “or any swap” after “commodity)”.

Subsec. (a)(1)(C)(iv). Puspan. L. 111–203, § 749(h)(2), added cl. (iv).

Subsec. (a)(1)(D). Puspan. L. 111–203, § 753(c), added subpar. (D) and struck out former subpar. (D) which read as follows: “who purchased or sold a contract referred to in subparagraph (B) hereof if the violation constitutes a manipulation of the price of any such contract or the price of the commodity underlying such contract.”

Subsec. (a)(4), (5). Puspan. L. 111–203, § 739, added pars. (4) and (5) and struck out former par. (4). Prior to amendment, text of par. (4) read as follows: “No agreement, contract, or transaction between eligible contract participants or persons reasonably believed to be eligible contract participants, and no hybrid instrument sold to any investor, shall be void, voidable, or unenforceable, and no such party shall be entitled to rescind, or recover any payment made with respect to, such an agreement, contract, transaction, or instrument under this section or any other provision of Federal or State law, based solely on the failure of the agreement, contract, transaction, or instrument to comply with the terms or conditions of an exemption or exclusion from any provision of this chapter or regulations of the Commission.”

Subsec. (a)(6). Puspan. L. 111–203, § 738(c), added par. (6).

Subsec. (span)(1)(A). Puspan. L. 111–203, § 749(h)(3), substituted “section 7, 7a–1, 7a–2, 7span–3, or 24a of this title” for “section 2(h)(7) of this title or sections 7 through 7a–2 of this title”.

2008—Subsec. (a)(2). Puspan. L. 110–246, § 13105(i), substituted “7a–1(c)(2)(H)” for “7a–1(span)(1)(E)”.

Subsec. (span)(1)(A). Puspan. L. 110–246, § 13203(n), inserted “section 2(h)(7) of this title or” before “sections 7 through 7a–2”.

2000—Subsec. (a)(1). Puspan. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(A)(i)(I)], substituted “registered entity” for “contract market, clearing organization of a contract market, licensed board of trade,” in introductory provisions.

Subsec. (a)(1)(C)(i). Puspan. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(A)(i)(II)], substituted “registered entity” for “contract market”.

Subsec. (a)(2). Puspan. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(A)(ii)], substituted “sections 7(d)(13), 7a–1(span)(1)(E),” for “sections 7a(11),”.

Subsec. (a)(3). Puspan. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(A)(iii)], substituted “registered entity” for “contract market” in introductory provisions.

Subsec. (a)(4). Puspan. L. 106–554, § 1(a)(5) [title I, § 120], added par. (4).

Subsec. (span)(1). Puspan. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(B)(i)], substituted “registered entity that fails” for “contract market or clearing organization of a contract market that fails”, “sections 7 through 7a–2 of this title” for “section 7a(8) and section 7a(9) of this title”, “registered entity that in” for “contract market, clearing organization of a contract market, or licensed board of trade that in”, and “registered entity to the” for “contract market or licensed board of trade to the”.

Subsec. (span)(3). Puspan. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(B)(ii)], substituted “employee of registered entity” for “employee of a contract market, clearing organization, licensed board of trade,” and “such registered entity” for “such contract market, licensed board of trade”.

Subsec. (span)(4). Puspan. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(B)(iii)], substituted “registered entity” for “contract market, licensed board of trade, clearing organization,”.

Subsec. (span)(5). Puspan. L. 106–554, § 1(a)(5) [title I, § 123(a)(25)(B)(iv)], substituted “registered entity” for “contract market, licensed board of trade, clearing organization,”.

1992—Subsec. (a)(1). Puspan. L. 102–546, § 402(14)(A), substituted “subparagraphs” for “clauses” in introductory provisions and “subparagraph” for “clause” in subpar. (D).

Subsec. (a)(2). Puspan. L. 102–546, § 402(14)(B), made technical amendment to reference to section 21(span)(10) of this title to correct reference to corresponding section of original act.

Subsec. (a)(3). Puspan. L. 102–546, § 222(d), added par. (3).

Subsec. (c). Puspan. L. 102–546, § 211, amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “The United States district courts shall have exclusive jurisdiction of actions brought under this section. Any such action must be brought within two years after the date the cause of action accrued.”

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Amendment by sections 738(c), 739, and 749(h) of Puspan. L. 111–203 effective on the later of 360 days after July 21, 2010, or, to the extent a provision of subtitle A (§§ 711–754) of title VII of Puspan. L. 111–203 requires a rulemaking, not less than 60 days after publication of the final rule or regulation implementing such provision of subtitle A, see section 754 of Puspan. L. 111–203, set out as a note under section 1a of this title.

Amendment by section 753(c) of Puspan. L. 111–203 effective on the date on which the final rule promulgated by the Commodity Futures Trading Commission pursuant to Puspan. L. 111–203 takes effect [see 76 F.R. 41398, effective Aug. 15, 2011], see section 753(d) of Puspan. L. 111–203, set out as a note under section 9 of this title.

Effective Date of 2008 Amendment

Amendment of this section and repeal of Puspan. L. 110–234 by Puspan. L. 110–246 effective May 22, 2008, the date of enactment of Puspan. L. 110–234, except as otherwise provided, see section 4 of Puspan. L. 110–246, set out as an Effective Date note under section 8701 of this title.

Amendment by section 13203(n) of Puspan. L. 110–246 effective June 18, 2008, see section 13204(a) of Puspan. L. 110–246, set out as a note under section 2 of this title.

Effective Date

Section effective Jan. 11, 1983, see section 239 of Puspan. L. 97–444, set out as an Effective Date of 1983 Amendment note under section 2 of this title.